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ISLAMABAD: Prime Minister Imran Khan on Tuesday gave a go-ahead for increasing natural gas rates by an average of 46 per cent as determined by the Oil and Gas Regulatory Authority (Ogra) in June and ordered steps to control annual gas theft of Rs50 billion.

Presiding over a briefing on gas sector, the prime minister asked the petroleum division to get it approved from the forum concerned and clear the backlog of issues which have piled up when he was explained about the need for gas tariff increase.

Additional secretary in charge of petroleum division Mian Asad Hayauddin briefed the prime minister, in detail, about the existing situation vis-à-vis demand and supply in the oil and gas sectors, rationalisation of gas sale prices, recovery of receivables and inability of the previous government to award any exploration licence in the past five years. Minister for Petroleum Ghulam Sarwar Khan also attended the briefing.

A petroleum division official explained that a summary for the gas tariff increase was placed before the first meeting of the Economic Coordination Committee (ECC) last week but Finance Minister Asad Umar desired that it should be taken up for a decision later with the approval of the prime minister.

Now an improved version of the summary will be taken up with the ECC for approval before the issuance of a formal notification of the consumer-end gas price with the endorsement of the federal cabinet.

“There is no other way out,” said the official when asked if the prime minister was convinced about the gas price increase when he had been talking about reducing the burden on common people.

Last week the two gas companies – Sui Southern Gas Company (SSGP) and Sui Northern Gas Pipelines (SNGP) – had requested the government to implement gas price hike determined by the regulator to bridge their deficits and improve cash flows.

The SNGP had explained that it was purchasing natural gas from about 40 gas producers at an average rate of Rs629 per MBTU (Million British Thermal Unit) and selling at Rs399 per unit, with a net loss of about Rs230 per unit.

It was reported that SNGP’s receivables stood at Rs165 billion as of Aug 20, 2018 compared to Rs171 billion payables. The receivables of SSGCL stood at Rs203.567bn against its payables of Rs148.786bn.

The prime minister was also updated on the construction and operationalisation of Tajikistan-Afghanistan-Pakistan-India (TAPI) pipeline and Pak-Iran gas pipeline along with other significant projects to meet growing energy needs.

Mr Khan was informed that non-implementation and frequent altering of oil and gas sector policies had affected investors’ confidence, leading to non-awarding of exploration blocks during the past five years. He directed that a comprehensive plan of action with delineated timelines should be submitted at the earliest to address various issues of the oil and gas sectors.

He was given a detailed view of a gas price freeze over the past five years and the 46pc increase in prescribed gas price determined by the regulator on June 24.

The increase in prescribed prices are based on estimated revenue requirements of the two utilities for fiscal year 2018-19 and are worked out keeping in mind various ongoing projects and other expenditures.

Up to 186pc rise

The regulator determined up to 186per cent increase in gas rates for poorest categories of domestic and commercial consumers, while the prescribed rates for other categories – industrial, cement, CNG, power and commercial – have been jacked up by 27 to 31 per cent for the two companies.

According to Ogra, the SSGC that serves Sindh and Balochistan will need Rs167 billion during the next financial year to fund its ongoing programmes.

Therefore, it has approved 45.54pc (Rs184.34 per unit) increase in the average prescribed price from its existing rate of Rs404.75 to Rs589.09 per unit.

Likewise, the regulator approved the 2018-19 revenue requirement for SNGP, which serves Punjab and Khyber Pakhtunkhwa, at Rs287bn, necessitating an average prescribed price of Rs629.33 per MBTU, up 3.37pc (Rs20.57 per unit) from its existing price of Rs608.76 per unit.

Ogra determined the gas price for the domestic and commercial consumers using less than 100 cubic metres per month at Rs294.55 per unit (180pc increase from Rs105.15 per unit), while the second slab using up to 300 cubic metres per month (both commercial and residential) would be charged Rs589.09 per unit instead of Rs210.31.

The prescribed price for third domestic slab of more than 300 cubic metres per month would be jacked up by 26.4pc and charged at Rs664.52 per unit instead of Rs525.76 while the same consumption in commercial category would be charged at Rs797.42 per unit instead of Rs631 per unit, showing an increase of 26.4pc.

All other categories in larger commercial, ice factories, industrial, captive power, CNG stations, cement plants, fertilizer, public sector power houses and independent power plants will see a 26.4pc increase.

For example, the commercial consumers and ice factories will be charged at Rs798 per unit instead of Rs631, while industrial consumers and Pakistan Steel, Wapda plants and Independent Power Producers (IPPs) will be charged Rs611 per unit instead of Rs484, captive power plants of industrial units will be charged Rs718 per unit instead of Rs568 while CNG stations will be charged Rs822 per unit instead of Rs650 per unit.

The highest rate of Rs930 per unit will be applied to cement factories instead of existing rate of Rs736. The feedstock gas for Fauji Fertilizer, Bin Qasim, will be charged Rs156per unit instead of Rs123 per unit.

Comments (145) Closed

The pre-existing rates and discrepancies indicate the how sad state of affairs that perpetuated in the previous governments and how the energy sector drowned in debt

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Zahid

Sep 05, 2018 08:17am

Great for poor people!!

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Syed

Sep 05, 2018 08:27am

46 percent increase... Must be a typo.

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WAZIRPUR ROAD

Sep 05, 2018 08:28am

Taste of naya pakistan

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Qamar

Sep 05, 2018 08:34am

It is very amazing that PM Khan instead of overhauling the system putting burden on common man. Is this the tabdeli.

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Kaiser.

Sep 05, 2018 08:35am

Over 45 percent increase for Sindh and Balochistan and 3 percent increase for us in Punjab and KP. Thank you.
And to think of it , it is their gas we are using!

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Patriot

Sep 05, 2018 08:37am

Think about villagers where there are no gass pipelines, they fill Cylinders from shops nearby, They are paying double the price. It's almost 300 pkr per kg.

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Taimur

Sep 05, 2018 09:03am

Opposition parties should awake now and try stop government from this "Zulm" on poor people

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Reality check

Sep 05, 2018 09:13am

Tabdeeli in full swing making exports competitive !!!! Weekly inflation already ticking upwards!!! LPG touching almost 150/kg as compared to Rs 80/kg within few weeks

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Arif

Sep 05, 2018 09:18am

Welcome to Naya Pakistan. Very easy way to earn. The increase of 20% electricity charges and now gas will destroy local industry.

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Asad

Sep 05, 2018 09:29am

Very good decision, gas was priced insanely low.

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Rehan

Sep 05, 2018 09:42am

There was a time Khan raised his voice on the containers against the ruler on such exorbitant Price hike.
I guess the reality has hit and he is the one to proove such decisions. Just a reminder!

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Saad Khan

Sep 05, 2018 09:43am

186 percent increase for the poorest category of domestic consumers. No gas for the poor in naya Pakistan?

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anwarsher

Sep 05, 2018 09:47am

This is just the beginning. After impending borrowing from IMF, prices are likely to rise even more whereas subsidies that benefit the poor will be withdrawn.

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Bari Abro

Sep 05, 2018 09:58am

Instead of curtailing the losses and inefficiencies the solution is price hike!!! And the new prime minister gets convinced....

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iamonline

Sep 05, 2018 09:58am

@Life its a economical mater i think CJP should stay away from it

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Farooq Khan

Sep 05, 2018 10:10am

stop losses, rationalize prices, get the country out of the debts of all kinds. Lodge all small and big thieves into jails.

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Alax

Sep 05, 2018 10:16am

180pc increase in 1st and 2nd Slab-both commercial and residential
Ist slab under 100 cubic metres per month charged at Rs294.55 per unit from Rs105.15 per unit
2nd slab under 300 cubic metres per month charged Rs589.09 per unit instead of Rs210.31.

26.4pc increase in third domestic and commerical slab
More than 300 cubic metres per month charged at Rs664.52 per unit instead of Rs525.76 and similar consumption in commercial category would be charged at Rs797.42 per unit instead of Rs631 per unit

Why the lower and middle class have to pay more despite using less gas?

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Alpha

Sep 05, 2018 10:20am

" The feedstock gas for Fauji Fertilizer, Bin Qasim, will be charged Rs156per unit instead of Rs123 per unit."

Why give such a huge discount to the fertilizer manufacturers? Charge them the same rate as other Industrial units and instead give direct subsidies to small farmers (less than 15 or so acres) to provide relief and prevent abuse of the subsidy.

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Alpha Bravo

Sep 05, 2018 10:23am

You asked IK not to go to IMF. So now bear the burden.

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Farrukh Munir

Sep 05, 2018 10:35am

Isn’t it very easy to criticise price rises while in opposition? In the international market there has been no increase in the prices of gas so why put this extra burden on the poor people? Instead of increasing the prices, the captains of NAYA PAKISTAN should have asked the CEOs of the two main gas companies to get their act together by recovering all outstanding amounts and by controlling gas theft (which is done by their cooperation, by the way) and to control gas leakage. A sad day for the poor people who were hoping for miracles from this new setup.

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Siddhartha Saxena

Sep 05, 2018 10:36am

Poor should get subsidy rich shouldnot . Totally miscalculated decision. He should focus on stoppping theft as well.

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ISHRAT salim

Sep 05, 2018 10:38am

@Qamar due to wrong policy of previous govt, this was unavoidable, and Mr Asad FM had already indicated that such action was inevitable in view of the mess left by the previous govt. However, the present govt of pit will not let this kind action continue but will focus on recovery , control wastage and leakages and corruption. But the result from this kind of action cannot be expected overnight.

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Abubakkr

Sep 05, 2018 10:46am

Thank you nawaz sharif. Thank you the voters of nawaz sharif. Thank you pmln.

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Nawaz

Sep 05, 2018 10:49am

No other option. The only way to lessen the burden on poor is to stop gas theft.

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Shah

Sep 05, 2018 10:59am

People elected Imran Khan at the very end when there is nothing left.

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AbdulRahman

Sep 05, 2018 11:08am

Prices of domestic gas in the country is lower than any other country in the world. However, people are used to enjoying the subsidies. If the gas companies continue to incur losses, one day the will end up. Next is for discoveries new sites and exploration, funds are required. If the discovery and exploration of new gas sites are done at domestic level, it will save a lot of foreign company cost and generate more jobs inside the country. Trust in IK because he has no interest in looting your money like NS and other corrupts. Saving money is not an option (though it is also necessary); every individual must go for earning more money. Things will be costlier and it's happening throughout the world.

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Syed

Sep 05, 2018 11:09am

Same approach as past, instead of controlling gas theft and losses increase prices for ordinary consumers. If this the change PTI promised?

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Ajmal Abbasi

Sep 05, 2018 11:13am

This is all the because of the baggage that previous incompetent government has left behind. IK's government has no choice but to take such hard decisions at this point. But yea, if things don't change with time then this government would be equally blamed.

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Najeeb

Sep 05, 2018 11:16am

Welcome to Naya Pakistan, where the masses are desperately looking some relief.

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anwarsher

Sep 05, 2018 11:26am

Waited till the outcome of Presidential Election and then went ahead with this price hike.... it was already preplanned act.

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Just Saying

Sep 05, 2018 11:27am

This will be reversed when the stolen money starts rolling into coffers.

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me

Sep 05, 2018 11:31am

it is obvious now , why Pakistan economy and energy sector faced so much crises ..
with a net loss of about Rs230 per unit. ...

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AQ

Sep 05, 2018 11:31am

The mess made by last governments have to be compensated in any way. Previous two Govt never think about whats going worst in country. Look at the Gas sector, they owe billions and in running with loss. what kind of Governance PPP and PMLN did in last 30 years. There are more to come. I bet all state regulated departments have similar stories. its about time to mend the destruction. Last 2 govt have wounded Pakistan we have to mend it, and cant happen without cost.

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Arif Godil

Sep 05, 2018 11:41am

Please look at alternates to raise the funds. This step is like hurting yourself in the back.

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srehman

Sep 05, 2018 11:51am

Are people just commenting without reading?

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John

Sep 05, 2018 11:53am

This will only increase black market by many folds.

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Harish

Sep 05, 2018 11:53am

Who will do the Dharna now?

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sumaira mardan

Sep 05, 2018 11:54am

increase in elecytricity, gas price, internet bills etc. it seems government is not much interested in collecting direct taxes but like previous governments will go for any easy option to increase indirect taxes, business will go as usual

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Meer

Sep 05, 2018 11:56am

@Naveed Arsalan Shame on you.

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Khayyam

Sep 05, 2018 11:58am

How about slashing cuts for executives and CEOs?

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white noise

Sep 05, 2018 12:00pm

if you charge the companies this much, who do you think they will pass that onto? the inflation will rise, unless wage growth is corrected. why these people not investing in renewables?

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Javed Akhter

Sep 05, 2018 12:12pm

Very high ratio of enhancement of tariff. Will definitely raise cost of commodities in the country. Pl review the same.

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Danish

Sep 05, 2018 12:15pm

I think price for gas should increase more as gas resources are limited in future when Pakistan import gas from other countries wI'll not affect to the consumers .

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Ahmed

Sep 05, 2018 12:15pm

A massive increase in price from a government that claims to be a champion of the poor. Many of them use gas in cylinders which will now be even more expensive. Prices were steady for the last five years, allow some credit to the fallen.

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Imtiaz Ali Khan

Sep 05, 2018 12:22pm

30 years of mega loot by Nawaz and Zardari and their cronies left us with no choice. I will pay more it's OK but I know my money is not getting plundered like the incarcerated prisoners like Nawaz and family.

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Gul Kainth

Sep 05, 2018 12:24pm

@srehman yes . They don't want to spend time while reading this article ,telling a gruesome picture of our gas sector.

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ExMohajirinUK

Sep 05, 2018 12:25pm

@Qamar, understood the real meaning of tabdeeli? But we are not supposed to say anything for next 3 months, and that's when he will show us the real tabdeeli. Probably helicopter service for all instead of trains.

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Afzal nadir

Sep 05, 2018 12:29pm

There was no way out...pm Khan is taking hard decisions for better future of these institutions...previous corrupt rulers have almost ruined every institution and now the real leader is taking hard decisions for Pakistan

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A shah

Sep 05, 2018 12:32pm

A glimpse into the future of Pakistan without US aid

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Saood

Sep 05, 2018 12:35pm

So the ground for imf conditions are being met even before they approached it.and they said we wont go begging

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Inshallah_MPA

Sep 05, 2018 12:38pm

Instead of increasing natural gas prices please get rid of the CNG - those who can afford a car should be able to pay a little extra for petrol - gas for cooking however is used by everyone. Unfortunately CNG station mafia perhaps will never let that happen

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Dang

Sep 05, 2018 12:39pm

Hope IK takes U-turn from this.

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Taimur

Sep 05, 2018 12:46pm

The same political parties were protesting less than 5% hike in petroleum prices. Shameful, how they forget promises when they form govrnment

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nauman

Sep 05, 2018 12:47pm

Wait for more "Tabdilee" for poor class !

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Etna.cincinati

Sep 05, 2018 12:49pm

Not so much to do with the current or previous government. It is the cumulative effect of all past government's mismanagement and misplaced priorities. Someday, it will be the people who carries the burden of inept governance.

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atif khan

Sep 05, 2018 12:50pm

Dear Khan Saib, Gas theft is one of the measures that needs to be taken, there is another area which needs to be controlled, low standard gas appliances are tremendously wasting the precious resource.for example good quality room heaters do not waste gas ..and consume less gas ..you need to check on market as well ..set standard for manufacturers.market is full of low standards appliances

Take the bitter pills and get well soon.There is no other way out except to live within your means.

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Foozi

Sep 05, 2018 12:55pm

Pilferage will increase thats the roughest formula in pakistan. People have gas connections without a meter and meter readers pocket the benefits thus reaped. Their pockets will become heavier

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Saood

Sep 05, 2018 12:58pm

@Gul Kainth .pti when in oppositikn use to protest against price increases.so now its time they face it too.either they knew it and protested to fool people our they were dumb as cm buzdar

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Khurram

Sep 05, 2018 12:58pm

Will it not be more fare to introduce prepaid meters and be done with the theft matter over 99% this, increase is killing legitimate gas bill payers and is also not a valid game for people like us, why should we bare the luxury of thieves and rule breakers? Put the freaks in jail.

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haris

Sep 05, 2018 01:01pm

@Kaiser. : This is due to the producers deficits. SSSGC supply gas in Sindh and Baluchistan nad has the highest deficit whereas SNGC has requested a rise of just over 3% based on their own deficts.

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BAXAR

Sep 05, 2018 01:14pm

@A shah "A glimpse into the future of Pakistan without US aid" A glimpse into the present after the US aid in the past.

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S Chaudhry

Sep 05, 2018 01:18pm

@AbdulRahman Then why was all that hue and cry when the petroleum prices were raised by 1 or 2 percent? Why not control gas theft? Why not focus on better management? Why to target poor people? This is poor governance (or no governance at all). There is no difference between this government and the previous governments by PMLN and PPP. Instead, it is worse They neer went for 46% hike. This is just to please IMF ahead of Pompeo's visit

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BAXAR

Sep 05, 2018 01:24pm

@sumaira mardan "it seems government is not much interested in collecting direct taxes but like previous governments will go for any easy option to increase indirect taxes," Would have you voted for someone if he had promised to collect direct taxes? The media and the "intellectuals" would already had crucified him, before you could vote for him. Those who advocate direct tax against indirect tax, are the enemies of the mafia that shapes your political choice. There is no harm in increasing the gas price even if it was 100%, but provided the direct tax is also imposed and indirect tax lowered.

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Saad Saeed

Sep 05, 2018 01:30pm

@Life Yes, he should stop government from increasing the price personally offer to finance to deficit of the two utility companies. Jokes

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BAXAR

Sep 05, 2018 01:30pm

@Siddhartha Saxena "Poor should get subsidy rich shouldnot ." Subsidy is not for the poor, it benefits the rich. What the poor need is equality in the society, that is the subsidy that no government is willing to provide.

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QADIR KHAN BALOUCH

Sep 05, 2018 01:31pm

This will be reversed.

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Chinpaksaddique

Sep 05, 2018 01:33pm

This is too much. I love PMIK but this price hike is too high. My industry relies on gas. I have to then hike the price of products

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RUMI

Sep 05, 2018 01:38pm

Hay ! Don't blame me! I didn't vote for PTI.

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Revolution

Sep 05, 2018 01:40pm

Ik has no choice, due to bad governments over so many generations, pmln has left the country bankrupt, hence its impossible to offer any further huge subsidies,

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scandalspk

Sep 05, 2018 01:43pm

take good decision

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Mohit(US)

Sep 05, 2018 01:44pm

@AbdulRahman : cheapest in world? in india you get a cylinder for almost 850 rs( excluding 12 subsidized cylinders per year) having 16 kg of gas.. means less than 60 INR per kg.. or roughly 105 PKR.. you sure about your numbers?

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pervez

Sep 05, 2018 01:47pm

@Imtiaz Ali Khan --30 years of mega loot by Nawaz and Zardari and their cronies left us with no choice

Yeah...for next 300 years people like you will keep harping this comment blaming everything on Nawaz and Zardari.

Remember this is new Pakistan. Elites are bringing tabdili, poors have to suffer.

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Fez

Sep 05, 2018 02:22pm

@Ahmed prices were steady? How come most of industry was shut or stagnant during their tenure then? The poor don't need gas, they need clean water. Cook in bulk, even cook together, hotels always give food to the needy. This is especially the case in Pakistan. Austerity is needed. Nothing was left.

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Hmv

Sep 05, 2018 02:36pm

The poor have to pay for the loot done by ...
Why can’t the spending by judges be disclosed under such extreme burden on innocent and poor ??

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Abdul Basit

Sep 05, 2018 02:37pm

The CEOs of both the gas companies failed to produce any substantial plan to control line thefts. They also did not provide any plan to reduce the expenses of their companies. The CEOs of both the gas companies did not put up any explanation as to how they plan to retrieve amounts from their debtors. The government opted to heed to thebureaucratic move and laid the axe on the heads of the consumers. This is a very unfortunate and sorrow state of affairs. If same line of action is perused by all utility companies then the inflation will go out of control and the life of the poor man will become a living hell.

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Tabdeeli Aagai Hay

Sep 05, 2018 02:45pm

Naya Pakistan. In which prices for big companies are increased 15-25 %, while for poor people 40-45%.

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A Singh

Sep 05, 2018 02:55pm

Stopping the highly suspect theft of gas, collection of outstanding payments and prevention of leaks should have been a priority. Increase in price should have been more cautious and sympathetic to the poor and small industry and farmers. More to come from Ik so watch this space.

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Atif

Sep 05, 2018 03:07pm

46% increase?!
How are the people expected to pay for this?

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Perplexed

Sep 05, 2018 03:16pm

Please introduce rewarding scheme for people to report on any form of energy theft they observe in their neighborhood and surrounding. And masses should also realise if they ignore such theft then they'll have to pay for this in the form of price hikes and surcharges. You can't expect energy companies' staff to police 220 million people until there is a foolproof system of supply in place.

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Arif

Sep 05, 2018 03:18pm

This is going to directly affect the poor citizens o the country. Seems that there is no space for subsidy in Naya Pakistan.

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Ahmed

Sep 05, 2018 03:26pm

@Fez
Austerity like charity begins at home, not by living in a mansion spread over 300 kanals. The slump in manufacturing was caused by the energy crisis which was alleviated to a great extent by the previous administration, a fact grudgingly accepted by even their worst detractors.

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Ahmed

Sep 05, 2018 03:40pm

@Fez
Your remarks: The poor do not need gas......., They cook in bulk? .....They get food from hotels are most unfortunate and flippant, poking fun at the people that need help the most, are they to rely on free food from hotels for sustenance?

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spectator

Sep 05, 2018 03:42pm

@Imtiaz Ali Khan you are living in utopia

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Feroz

Sep 05, 2018 04:12pm

Will this increase of 46% in gas prices benefit the people of Baluchistan or will it fill someone else's coffers.

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Sameer

Sep 05, 2018 04:30pm

No hikes till the corrupt are in jail. I am not paying for their convenience.

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AD

Sep 05, 2018 04:31pm

Looking by comments, I find people a bit confused. The hike is highest at the lowest consumption slab but that does not mean poors will may more than the rich. It is just a way of cutting the subsidy. In my opinion, it is initiation of ground work to start the discussions with IMF which in any case would ask subsidies to be drastically cut.
The other suggested options like pluggig the leakage and collecting arrears are long term measures and would certainly be persued but this step was needed to handle the critical situation. Thoughj their could always be an unending argument on numbers like 186%, 46% etc...

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Dr. Salaria, Aamir Ahmad

Sep 05, 2018 04:33pm

What a cruel, silly, sad, brutal and stupid joke?

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akbar

Sep 05, 2018 04:47pm

Naya pakistan. Yay

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farhan

Sep 05, 2018 04:48pm

pertol/gas/electricity and other utilities should be priced at the cost+reasonable profit otherwise the private sector will not invest in it. Poor people should get a subsidy based on income levels. right now the prices are kept artificially low but the rich consume more, we should not be giving subsidy to the rich. also long term we need to look at solar and other alternative energy (solar/nuclear/hydro), we cannot afford gas/petrol.

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asheikh

Sep 05, 2018 04:52pm

What steps are being taken to stop the water, gas and electricity theft. Those who already pay will be paying more now. It is not fair.

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Haseeb khan

Sep 05, 2018 05:05pm

@Shah and they should not expect much.

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Khurram

Sep 05, 2018 05:05pm

Better to move to another country till tabdili takes place.

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Flippy

Sep 05, 2018 05:32pm

For people who are screaming foul, please note that the loans Pakistan has acquired comes with a cost. 60% of supplied gas procured in Pakistan is through Iran and other countries. 40% is supplied/mined locally and of that majority gets exported or is sold back at a higher price to Pakistan. We do not have have local mining companies so we are dependent on foreign companies to mine for us in our own country. These price hikes are in line with IMFs austerity measures and Pakistan agreed to this when taking loans. Another issue is gas theft so all in all even citizens are responsible for the price hike. The only way to generate revenue is to increase price, or privatize it. I think Pakistanis are too gullible to understand the realities of issues that this country is going through. People take things for granted and it is now biting us back today. We are the cause for this and sooner we understand it the better.

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Zulfiqar

Sep 05, 2018 05:37pm

This 1st Gift of PTI to the people of Pakistan. Wellcome to Naya Pakistan.

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naji

Sep 05, 2018 05:51pm

Correct decisions, also make sure that gas bill collection should be in time and very easy way, whether client receive your gas company bill paper copy in time or note. send their bill payment information via SMS (Like KElect) and allow each client to made payment directly in their Gas company account in any bank's branch. Make sure your Gas company computerized system is so strong that client receive their PAYMENT acknowledgment via SMS and on paper in next bill surely.

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Raj Patel

Sep 05, 2018 05:51pm

You elected him for naya Pakistan you have to bare consequences too.

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EAS Yazdanie , petroleum consultant

Sep 05, 2018 06:03pm

As an Consultant in oil and gas industry of Pakistan , I have a pessimist view on the issue of increasing the gas price by two distribution and transmission companies in Pakistanin my humble point of view m, that the decision could have a negative impact on the local E & P producers in the market.

The increase in gas prices for gas distribution companies will ultimate adversely affects the cost of doing business both upstream and down stream sector of Pakistan and is a negative development for the market,

The increase in gas tariff / consumer gas price could be the precursor of another unpopular decision by this government will ultimately directly or indirectly increase the electricity tariffs for power generation companies. This gas tariff will definitely come closer to the the imported LNG . Let’s see what other Givernment comes in next 100 days. Let’s cross our fingers for betterment of Pakistan.

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Km

Sep 05, 2018 06:05pm

@AbdulRahman i dont know bro what kind of gad is this..in india a LPG cylinder 14.2 kg costs i guess 500rs approx and 12 cyclinders r given to everyone in year..if u need more than its 800rs approx after 13 cylinders a year. That way it appears toocostly in pak.
Please note poor are given free gas stoves and even some cylinders but its state specific.

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Syed Ahmed, Canada

Sep 05, 2018 06:22pm

@Taimur: "Opposition parties should awake now and try stop government from this "Zulm" on poor people". My dear friend you have requested the same people who are directly responsible for the turmoil in the country. Where is Shahid Khaqan Abbasi and his associates? Truly the money should be recovered from them and the public should not be burdened.

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Vikas

Sep 05, 2018 06:32pm

46% increase in Gas prices. A great "game changer" IK is. Don't worry till now the older "game changer" CPEC is still not dead. There is still hope for Pakistan to become the richest and the most powerful nation on Earth.

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Amjad Durrani Engineer USA

Sep 05, 2018 06:54pm

One of the prudent decisions by the new govt. when it is going to the IMF for $9 billion as urgent bailout loan required buoy sinking economy. Other similar conditionalities required for approval of requested loan, may include across the board incom tax reforms, devaluation of currency, inflation control, cut in development fundings, and other austerity measures. All of these very difficult measures, though make financial sense but will be immensely unpopular to begin with. Present hike in inflation of 5.7%, is likely to sky rocket after this decision & when other condionalities of IMF are met, with political fallout to be unmanageable. The utility companies at large are suffering due to huge pilferage of gas/electricity due to theft made possible by conivance between industrial consumer & low paid workers of the companies. This theft is conviently charged to the domestic user as surcharge. Cutting domestic/industrial subsidies w/o tackling this issue will have severe political fallout

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Moona

Sep 05, 2018 07:00pm

Shame on you--protecting the rich, taxing the poor.

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Miqbal rangoonwala

Sep 05, 2018 07:01pm

Instead increasing the rates it's shall be reapproved from your gas company to remove the commited corrupt criminal peoples of gas company

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Anis Motiwala

Sep 05, 2018 07:18pm

When political Governments defer important decisions to ensure votes, this is what happens. Their successors have to bear the brunt. This price hike was on the cards for more than 3 years. A gradual increase would have made it palatable had it begun during the previous regime.

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Adi

Sep 05, 2018 07:18pm

Reality after fantacy stories of naya pakistan !

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GH

Sep 05, 2018 07:18pm

@AbdulRahman , really

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SAT

Sep 05, 2018 07:26pm

The new government will have to take such hard decisions to put the economy back on the rails. This hike in gas prices is still not enough but it is a decision in the right direction.

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Candasuck

Sep 05, 2018 07:49pm

I am government supporter as long they are not making any drastically insane policy. With population and demand price hike is necessary. My question Why PTI supporters who get blastic and start hate and angry comments when other government increase price by pennies but have no problem with price hike by there own government

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Candasuck

Sep 05, 2018 07:50pm

@S Chaudhry very sane comments

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Amjad Durrani Engineer USA

Sep 05, 2018 07:56pm

@EAS Yazdanie , petroleum consultant Thanks. As a professional having deep insight in financial implications of tariffs system to the ordinary consumer & its subsequent economic domino effect on other sectors, I tend to agree with your conclusions. There seems to be an undue haste in arriving at such a an important decision without proper homework, mainly reason being that the present government will soon be going to request for a bailout of $9 billions from the IMF. Apparently, the government has no other choice but to move towards w/this decision, but it is prudent to say that unless the required financial/economic cost benefit ratios not worked, highlighting its impact on the country’s sinking economy, as rightly pointed by you, this decision may required amendments due to socioeconomic backlash in near future. As you very correctly postulated, we should keep of finger crossed in hope that this decision may bring betterment & prosperity to the country & its people in the near future

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arun

Sep 05, 2018 08:31pm

Pakistan has the best resource in the world for wind , and solar. Why waste money on oil and gas imports?

In India , solar energy costs just 5 cents per kwh, cheaper than any gas but the politicians there are crazy , they want to cut it even more!! Talk about killing the golden goose. Solar panels and wind farms on a war footing can solve the problem within a couple of years.

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arun

Sep 05, 2018 08:56pm

Govt should charge market prices but pay the poor with two children or less enough a direct payment to compensate , this will encourage population stability

Populations multiplying three fold every forty years , Pakistan set to 600m by 2060 are not sustainable.

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Ayesha Sadozai

Sep 05, 2018 09:02pm

@A shah , this is not future without US aid, it's meeting the demands for IMF aid.

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AW

Sep 05, 2018 09:24pm

Government cannot and should not subsidize natural gas and electricity. However, policies need to be developed and implemented to encourage private sector investment in oil and gas exploration

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Imtiaz Ali Khan

Sep 05, 2018 09:26pm

@pervez The Grand Looters who are now behind bars more to follow, only way to get rid of problems in Pakistan is to go for Anti Corruption drive. Sindh's every aspect of humanity is destroyed by MQM and Zardari and kids party. Never again. I'm a Sindhi I know the realities on the ground.

Love to you my brother.

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Ahmed

Sep 05, 2018 09:51pm

This is the beginning of the Medina Ki Riyasat. Keep calm and pay on! Tabdheeli Mubarak!

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zulfiqar

Sep 05, 2018 09:53pm

Only shows how much the current setup understands the Gas pricing. The two giants, controlling the Gas in the country are comprehensively corrupt and issue false billings.

We need to control gas theft, not to increase price

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Lahori kid

Sep 05, 2018 11:45pm

These issues from the previous government will start showing up in Billions. You you continue to kick the ball down the road, at some point, it does catch up with you.

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Alla Bux

Sep 06, 2018 12:17am

@Kaiser. Punjab has complete rights over ALL natural resources. Our Army is 80% Punjabi.

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Abbasshah

Sep 06, 2018 12:20am

46% increase is hell of lot? Get gas from Iran as Pakistani lives matters the most then pressure from some Foreign countries !!!

Rather than combat theft, put additional burden on poor people ! Is this gift to nation by new government? Conventional False promises before elections !
Now again prices will hike of all stuffs ! Lets see how PTI workers will react ! Opposition must intervene.

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Rehmat Ali

Sep 06, 2018 10:50pm

@Asad Think about poor people ! May be you can afford 500% too.

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The Silent One

Sep 07, 2018 02:06am

This is stupid. The gas companies need to control their losses and make an infrastructure that is not prone to theft. They invest in substandard infrastructure, use third class equipment and then blame the nation for theft and raise prices - because they can get away with it. Same as the electricity companies who cry crocodile tears but cant improve their 18th century infrastructure. Dont blame the public for your own substandard practices.